Hello tax fans!
Sorry I've been away for a while, but I needed to rest and regroup after the April 15 deadline. There is an update to my status - I am no longer with the firm Braver PC. Right now I am on my own, but hope to find the next challenge in short order. In the meantime, I will still blog.
For those of you who have filed your 2009 tax returns, now is the time to start planning what your 2010 return will look like. For those of you waiting for the last minute...don't! It's way too stressful. Just get it done. If you need help, contact me.
Seriously, though, the best time to start planning for 2010 is now. I know the agony of this filing season is still fresh, but you can control a good deal of how your return will look next April. Stay tuned for 2010 planning tips.
Tuesday, April 27, 2010
Thursday, April 8, 2010
The Homestretch
April 15 is just one week away. The end is in sight. Or is it? For many of our clients living within the 7 Massachusetts or 4 Rhode Island counties ravaged by the flood waters, April 15 has become just another date. For many, tax season will continue another 4 weeks until May 11, the new deadline set by the Internal Revenue Service for the flood victims.
The extension until May 11 covers not only individual tax returns, but all other entities as well. It also extends the time to make any payments due, such as extension or first quarter 2010 estimated tax payments. For anyone who lives in these places and owes a lot of money, here is a good break to either save the money in your account or to have time to find the money to pay with.
To those of us tax professionals, April 15 is still THE date. It is the date we are shooting for when the gate opens after the new year. It is still the date after which we can take a deep breath and relax and reconnect with our families and friends. And it is certainly the date by which we should thank our families and friends for their patience and tolerance and our co-workers and office staff for their tireless efforts. Thank you.
I hope I have helped some of you out there with some practical, plain tax talk. I encourage all to let me know if there are other things you want me to write about. I hope to post again by April 15 and then I am going on vacation.
Remember, it's your money. Watch it carefully. Ask questions. Be healthy and safe.
The extension until May 11 covers not only individual tax returns, but all other entities as well. It also extends the time to make any payments due, such as extension or first quarter 2010 estimated tax payments. For anyone who lives in these places and owes a lot of money, here is a good break to either save the money in your account or to have time to find the money to pay with.
To those of us tax professionals, April 15 is still THE date. It is the date we are shooting for when the gate opens after the new year. It is still the date after which we can take a deep breath and relax and reconnect with our families and friends. And it is certainly the date by which we should thank our families and friends for their patience and tolerance and our co-workers and office staff for their tireless efforts. Thank you.
I hope I have helped some of you out there with some practical, plain tax talk. I encourage all to let me know if there are other things you want me to write about. I hope to post again by April 15 and then I am going on vacation.
Remember, it's your money. Watch it carefully. Ask questions. Be healthy and safe.
Friday, April 2, 2010
Charitable Contributions of Property
It has come to my attention that enough people do not know about a very important rule concerning charitable contributions. I'm not talking about the garden-variety check to the local police department. I'm talking about major contributions of furniture and household goods or other property (not including stocks) with a fair market value of greater than $5,000.
These days, it is not uncommon for new retirees to want to downsize and move somewhere warmer or more scenic. As part of that move, they give away half a house full of furniture. When it comes to tax time they want to take a charitable contribution for the value of that furniture, say $10,000.
Get An Appraisal
The rule here is simple: if a grouping of the same kind of items (say furniture) has a value of greater than $5,000, you must attach an appraisal to your tax return in order to claim that deduction. If you do not have that appraisal, your deduction is limited to $5,000 and even then, you would have a tough time proving it if you got audited. Yes, the appraisal will cost you something, but it's better than losing a big deduction and the appraisal itself may be deductible.
Take Pictures
In addition to the appraisal, which would give you an itemized list of the items and the value for each, you should take pictures of the items. This is just an additional layer of proof. When you are claiming a bigger than normal deduction, it is even more important to dot your "i"s and cross your "t"s. Not that this will necessarily cause an audit and you certainly should not take a deduction to which you are otherwise entitled for fear of an audit, but it may generate an inquiry from the IRS simply asking you ro prove the deduction.
Be ready. Take pictures and get the items appraised by a licensed appraiser.
These days, it is not uncommon for new retirees to want to downsize and move somewhere warmer or more scenic. As part of that move, they give away half a house full of furniture. When it comes to tax time they want to take a charitable contribution for the value of that furniture, say $10,000.
Get An Appraisal
The rule here is simple: if a grouping of the same kind of items (say furniture) has a value of greater than $5,000, you must attach an appraisal to your tax return in order to claim that deduction. If you do not have that appraisal, your deduction is limited to $5,000 and even then, you would have a tough time proving it if you got audited. Yes, the appraisal will cost you something, but it's better than losing a big deduction and the appraisal itself may be deductible.
Take Pictures
In addition to the appraisal, which would give you an itemized list of the items and the value for each, you should take pictures of the items. This is just an additional layer of proof. When you are claiming a bigger than normal deduction, it is even more important to dot your "i"s and cross your "t"s. Not that this will necessarily cause an audit and you certainly should not take a deduction to which you are otherwise entitled for fear of an audit, but it may generate an inquiry from the IRS simply asking you ro prove the deduction.
Be ready. Take pictures and get the items appraised by a licensed appraiser.
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